Frequently asked questions
What are securitieS?
Securities are financial instruments issued by a company, government or other entity. Most securities will be one of the following:
- equity securities (also called shares or stocks): securities that represent ownership of an entity and enable the investor to share in profits made by the entity.
- debt securities (such as bonds, debentures and other fixed interest investments): securities where the issuing entity promises to repay money to the investor at a future time.
- managed investment products: securities where investors’ money is pooled and invested by an investment manager, and the investors share the investment returns. KiwiSaver schemes are a form of managed investment product.
- derivatives: options, futures, forward contracts and other arrangements that can lock in interest rates, foreign exchange rates or other prices for future transactions.
How does the securities market work?
Securities markets are markets where existing securities can be bought and sold (sometimes referred to as secondary markets, as distinct from primary markets where new securities are issued, for example as an Initial Public Offering). Securities markets can further be divided into:
- organised exchanges, such as those operated by NZX, where orders to buy or sell securities are placed; and
- over-the-counter/off-market trading where individual parties buy or sell securities from each other directly, without visibility to other parties. NZX Participant firms are required to report to the market all their off-market transactions in NZX-listed securities.
Why are financial markets important?
Financial markets play a critical role in the productivity and prosperity of New Zealand’s economy – they provide investment opportunities for savers to plan for their financial future, and a vital source of capital for companies to innovate, grow and create jobs.
What is an NZX Market Participant firm?
A NZX Participant or Market Participant is a business that has been accredited by NZX to participate in the markets provided by NZX. Participants must comply with the applicable NZX Rules and Guidelines to ensure fair and transparent market practices. Individuals within these businesses can also be accredited as NZX Advisers. SIA members employ more than 500 accredited NZX Advisers, NZDX Advisers and NZX Derivative Advisers nationwide. Only accredited firms can use the NZX Firm logo.
For more information about the NZX visit www.nzx.com.
For more information about the NZX visit www.nzx.com.
What is A FINANCIAL ADVICE PROVIDER OR Financial Adviser?
SIA members employ more than 400 Financial Advisers (FAs) nationwide. FAs are qualified professionals who are authorised by the Financial Markets Authority to provide financial advice.
The Financial Services Legislation Amendment Act (came into effect 15 March 2021) requires firms that provide financial advice to be licensed by the FMA and adhere to a new Code of Professional Conduct for Financial Advice Services that ensures professional standards of competence, skills, ethical behaviour and client care.
For more information about where to find a Financial Adviser visit www.fma.govt.nz.
For more information about the Code of Professional Conduct for Financial Advice Services visit www.fma.govt.nz.
The Financial Services Legislation Amendment Act (came into effect 15 March 2021) requires firms that provide financial advice to be licensed by the FMA and adhere to a new Code of Professional Conduct for Financial Advice Services that ensures professional standards of competence, skills, ethical behaviour and client care.
For more information about where to find a Financial Adviser visit www.fma.govt.nz.
For more information about the Code of Professional Conduct for Financial Advice Services visit www.fma.govt.nz.
How is the securities industry regulated?
New Zealand is fortunate to have highly-regulated financial markets markets. For a summary of how our industry is regulated visit Our industry.
For more information about our regulators visit NZX and Financial Markets Authority.
For more information about our regulators visit NZX and Financial Markets Authority.
Where can I find out more about buying shares?
Visit Our members page - there you will find a list of our members with logos that link to their websites, or you can visit the NZX website that tells you about where to find a sharebroker or the Financial Markets Authority website can tell you where to find a Financial Adviser.
Where can I get financial or investment advice?
For more information about where to find an Authorised Financial Adviser visit www.fma.govt.nz or visit Our members page where you will find a list of our members with logos that link to their websites.
For general financial information you can also visit sorted.org.nz, a free service provided by CFFC (Commission for Financial Capability), which is a government-funded, independent agency dedicated to helping New Zealanders get ahead financially.
For general financial information you can also visit sorted.org.nz, a free service provided by CFFC (Commission for Financial Capability), which is a government-funded, independent agency dedicated to helping New Zealanders get ahead financially.
What can I do if I have a complaint?
Contact your financial service provider. Our member firms work hard to resolve any issues directly with their clients. Should a complaint arise, clients are advised at that time that if they are not satisfied with the outcome, they may contact Financial Services Complaints Limited (FSCL), an independent complaints resolutions scheme to which all SIA member firms belong. FSCL is a member of the International Network of Financial Services Ombudsman Schemes.
For more information contact your financial service provider or Financial Services Complaints Limited, Level 4, 101 Lambton Quay, Wellington 6011, Postal Address: PO Box 5967, Wellington, 6145. Email: [email protected] Telephone: 0800 347 257 www.fscl.org.nz.
For more information contact your financial service provider or Financial Services Complaints Limited, Level 4, 101 Lambton Quay, Wellington 6011, Postal Address: PO Box 5967, Wellington, 6145. Email: [email protected] Telephone: 0800 347 257 www.fscl.org.nz.
How do I contact the Securities Industry Association?
Contact details and a message form can be found on our Contact page.
Who we are The Securities Industry Association
is the voice of New Zealand’s sharebroking industry. |
What we do We advocate on non-competitive operational, policy, regulatory and legislative matters.
|
Our membersSIA members provide trusted financial services to private, corporate and institutional clients.
|
Disclaimer: The Securities Industry Association (SIA) is not a registered financial services provider or financial adviser. Information provided on this website is provided for general information only. The SIA and its members do not assume any responsibility for giving financial, legal or other professional advice through this website and disclaims any liability arising from the use of the information on this website. If you require financial, legal or other expert advice you should seek assistance from a professional adviser.
Securities Industry Association © 2018